P111B income: Every P6 of P10 earned by PAGCOR funds gov't projects, PhilHealth

MANILA, Philippines — The Philippine Amusement and Gaming Corp. (PAGCOR) saw its income soar by more than 40% in 2024, reaching around P111.72 billion. 

With a large portion of this revenue going to the government, it raises questions about where exactly the billions are spent.

According to PAGCOR’s report, P68.20 billion was allocated to nation-building projects, accounting for more than three-fifths of the government-owned and controlled corporation’s (GOCC) income in 2024.

This earmarked amount for nation-building represents a roughly 38% increase from 2023.

Around P26.74 billion was spent on operating expenses, leaving PAGCOR with a net income of P16.768 billion. 

'Nation-building projects'

Since the government is entitled under Presidential Decree 1869 to at least 50% of PAGCOR’s gross gaming revenues, it received around P46.27 billion in 2024.

The country’s universal health care program is also funded through 50% of the government’s share from PAGCOR’s income. 

In other words, about half of the P46.27 billion — roughly P23.14 billion — was earmarked for the expansion and improvement of the Philippine Health Insurance Corp.’s (PhilHealth) benefit packages in 2024.

It also provides funds for the zero-balance billing policy for patients admitted to basic accommodation at Department of Health hospitals. 

PAGCOR said they are required to remit the government share every month to the Bureau of Treasury, which is responsible for providing the mandated funds to PhilHealth. 

Where else has it spent its profit?

The second-largest allocation of PAGCOR’s funds is for socio-civic projects, totaling around P12.375 billion.

PAGCOR Chair and CEO Alejandro Tengco said the funds are not limited to infrastructure projects. 

They also include remittances to the Presidential Social Fund, a trust fund that supports socioeconomic development initiatives such as potable water systems, livelihood programs, services for street children, and disaster reconstruction.

Among the expenses incurred by the gaming operator and regulator were relief operations totaling P324.6 million in 2024, and P135.98 million in relief items distributed to areas affected by a train of storms and the southwest monsoon in mid-2025. 

It also provided financial grants to other government institutions and non-government organizations, amounting to P438.34 million.

On top of the government share, PAGCOR, as a GOCC, also pays franchise and corporate income taxes. For the franchise tax, it is required to pay 5%, which is higher than its corporate income tax.

2025 projections, plans

For the first half of 2025, PAGCOR reported an income of P59.06 billion, of which P38.10 billion was allocated to the government’s nation-building programs.

Launching its first flagship infrastructure project in partnership with the Department of Education (DepEd) and the Department of Public Works and Highways (DPWH), PAGCOR seeks to construct at least 1,200 classrooms of 125 three-storey buildings over the next three years, prioritizing far-flung and remote communities to address the shortage of learning spaces.

It also plans to build 200 e-learning centers in areas with high student concentration, 100 community wellness centers in grassroots communities to provide basic healthcare services and socio-civic centers to facilitate access to government services.

PAGCOR not gov't subsidized

Rep. Mikaela Suansing (Nueva Ecija, 1st District), chair of the appropriations panel, said the government does not fund PAGCOR. She clarified that the House held a budget briefing with the firm because it remains one of the government’s “critical funding sources.” 

“The government does not subsidize PAGCOR… and this briefing is to look into PAGCOR’s remittances to the treasury as reflected in the BESF as a funding source for the NEP,” she said, referring to the budget of expenditures and sources of financing (BESF) under the National Expenditure Program (NEP).

This explains why the House briefing zeroed in on PAGCOR’s online gambling earnings, which the corporation said have expanded “exponentially,” making up over half of its P215 billion total gross gaming revenue for the first half of 2025.

Online gaming makes up half of earnings

Tengco believes PAGCOR significantly contributes to government income through its remittances, supporting not only PhilHealth but the government’s budget as a whole each year, justifying its earnings. 

Rep. Leila de Lima (ML Party-list) argued that the government should not be reliant on gambling revenue, especially online gambling, given reports that rising gambling activity has harmed families, driven some into debt, and involved underage players.

“Hindi naman siguro mapapatigil ang operasyon ng gobyerno o magcocollapse ang ekonomiya natin kung mawalan ng online gambling,” she said. 

(The government’s operations probably wouldn’t stop, nor would our economy collapse, if online gambling were to end.)

De Lima said the government’s earnings from online gambling would be “worthless” if it came at the expense of ruining families and the future of Filipino youth.

PAGCOR projects a total income of P116.65 billion by the end of 2025, with an estimated P77 billion remitted to the national government.